The Three Laws of International Investment

National, Contractual, and International Frameworks for Foreign Capital

Jeswald W. Salacuse

Provides a comprehensive method of analysis for examining the law governing foreign investment

Uniquely considers all three bodies of applicable law together, showing their interaction and potential conflicts

Demonstrates how host and home countries use their legal systems to encourage and regulate international investment

The Three Laws of International Investment

National, Contractual, and International Frameworks for Foreign Capital

Jeswald W. Salacuse

Description

International investments are governed by three different legal frameworks: 1) national laws of both the host country and the investor's home country; 2) contracts, whether between the investor and the host country or among investors and their associates; and 3) international law, consisting of applicable treaties, customs, and general principles of law. Together, these three frameworks profoundly influence the organization, operation, and protection of foreign investments. Investors, government officials, and their legal counsel must therefore understand the complex interaction among these frameworks and how best to employ them to advance their interests.

This book examines the content of each of these three legal frameworks for international investment
and explores how they influence the foreign investment process and the nature of investment transactions, projects, and enterprises. The book is divided into five parts. Part I, after explaining the contemporary nature and significance of international investment, examines the theoretical and practical links between law and the investment process. Part II explores the nature of national laws regulating foreign investment. Part III considers of the various contractual frameworks for international investments, looking at their negotiation, content, and stability. Part IV sets out the international legal framework governing foreign investment, focusing on the content and nature of investment treaties and on general principles. Finally, Part V discusses how the three legal frameworks interact
with each other. By comprehensively examining each of the applicable legal frameworks, this book provides a vital overview of the laws, rules, and regulations governing foreign investment for lawyers, scholars, students, and government officials.

The Three Laws of International Investment

National, Contractual, and International Frameworks for Foreign Capital

Jeswald W. Salacuse

Table of Contents

Part I: International Investment and the Law 1. The Nature and Significance of International Investment2. The Relationship between Law and International Investment3. Three Legal Frameworks for International Investment: National, Contractual, and InternationalPart II: The National Legal Framework 4. Factors Shaping National Legal Frameworks for International Investment5. National Regulations of the Entry and Exit of Capital6. National Regulations on Foreign Investment7. The Challenges of Legal ChangePart III: The Contractual Framework 8. The Nature and Functions of the Contractual Framework for Investment9. The Negotiation of International Investment Contracts10. The Nature and Content of International
Investment Contracts11. Political Risk Insurance12. Contractual Stability, Instability, and RenegotiationPart IV: The International Legal Framework 13. The Foundations of the International Legal Framework for Investment14. The Treatification of International Investment Law15. The Nature and Content of Investment TreatiesPart V: Conclusion 16. The Interaction of the Three Legal Frameworks

The Three Laws of International Investment

National, Contractual, and International Frameworks for Foreign Capital

Jeswald W. Salacuse

Author Information

Jeswald W. Salacuse is the Henry J. Braker Professor of Law at The Fletcher School of Law and Diplomacy, Tufts University. Professor Salacuse has practiced law with a Wall Street firm, advised numerous governments and multinational corporations on investment law, and has taught at universities throughout the world. He has also served as president and a member of international arbitration tribunals under the auspices of the World Bank's International Centre for Settlement of Investment Disputes ( ICSID). Professor Salacuse is a former dean of the Fletcher School and of the School of Law of Southern Methodist University. He is a member of the American Law Institute and the Council on Foreign Relations.